BDO posts ₱40.6B profit in H1 2025 on loan growth

BDO Unibank Inc. posted a net income of PHP 40.6 billion in the first half of 2025, up 3 percent from PHP 39.4 billion in the same period last year, driven by double-digit loan growth and strong core business performance.

The country’s largest bank said the increase was supported by sustained customer demand across all market segments and improving asset quality, though earnings were partially offset by continued investments in market expansion and IT infrastructure for greater operational efficiency.

Return on Average Common Equity (ROCE) stood at 13.9 percent, reflecting the bank’s profitability and capital efficiency over the period.

Gross customer loans grew by 14 percent to PHP 3.4 trillion, reflecting broad-based growth in corporate, retail, and consumer segments.

Net interest income rose by 7 percent on the back of higher lending activity, while deposits expanded by 8 percent to more than PHP 4 trillion, with low-cost current and savings account (CASA) deposits comprising 69 percent of the total.

Non-interest income jumped 15 percent year-on-year, supported by rising fee-based earnings and the performance of its insurance operations.

The bank’s non-performing loan (NPL) ratio improved to 1.75 percent, from 1.95 percent in the previous year, while NPL coverage remained steady at 140 percent, indicating adequate provisioning against credit risks.

“BDO remains focused on executing its long-term strategy, which includes investments in enhancing operational resilience and broadening customer access,” the bank said in a statement.

Shareholders’ equity increased by 12 percent due to strong profits, pushing Book Value Per Share to PHP 113.04, while the bank’s capital adequacy ratio stood at a healthy 15.4 percent.

To support sustainable finance, BDO will issue its fourth ASEAN Sustainability Bonds on July 29, 2025, with a minimum aggregate size of PHP 5 billion.

The offer period, originally scheduled from July 9 to 22, closed early on July 14 due to strong demand from both retail and institutional investors.

Net proceeds will be used to finance or refinance eligible green and social projects under BDO’s sustainable finance framework.

The offering aligns with global trends and investor appetite for ESG-linked instruments and demonstrates the bank’s ongoing commitment to responsible banking.

Despite external risks such as global geopolitical tensions and new U.S. tariffs, BDO remains confident in the Philippine economy’s resilience, citing strong domestic demand and a consumer-driven growth model.

“The Bank remains well-positioned to manage emerging risks and capitalize on opportunities given its robust capital base and diversified business franchise,” it added.

BDO, a member of the SM Group, continues to hold the largest banking footprint in the Philippines with over 1,700 operating branches and more than 4,500 ATMs nationwide.